Card issuers sometimes tie up with companies, rather brands, to offer co-branded cards to their customers. The other aspect of co-branded card portrays a different picture. Co-branded credit cards can also be the cards which are a result of a partnership with multiple merchants and they can be used for making payments and getting offers like cashback and reward points for a variety of purchases with participating merchants.

A co-branded credit card has tie-ups with multiple payment networks or it can also be a card with multiple partner merchants. Some popular co-branded cards are mentioned to help you understand the benefits of co-branded cards better.

Jet Airways Citibank Gold Card: This card is free for life, i.e. there are no annual maintenance charges or fees. The card’s primary benefit is that it offers 4 JetPrivilege miles on every spent of Rs. 100 and upgrade vouchers when the customers has earned 4,500 miles on the card. The card also offers amazing discounts and rewards on the purchase of gold jewellery and ornaments from select merchants.

ICICI Bank Unifare Credit Card: This card from ICICI targets a very specific group of people – Delhiites who travel extensively on the Delhi Metro. This credit card combines the benefits of a Delhi Metro smart card with the advantages of a regular ICICI credit card. One of the distinct advantages is the auto top-up facility of the card which recharges your Delhi Metro Transit chip. With this card in your pocket, you never have to stand in a ticket or recharge queue in any Delhi Metro station ever again. This also comes with other points and rewards schemes which are common to other ICICI cards.

ABN Amro Adlabs Credit Card: This card offers reward points on movie ticket purchases from the Adlabs Cinemas. Other additional benefits include special offers such as exclusive ticket counters for card holders, special invitations for movie premieres, and reserved seats for new movies releases.

SBI Railway Card: Analogous to cards which offers air miles, this card allows the customers to earn railway points from railway ticket purchases. . Some other benefits of this card are the zero transaction charges on online railway ticket booking and a railway insurance of Rs. 10 lakh in the case of loss of life in a railway accident while travelling on a valid ticket.

Co-branded credit cards are great options because of their accessibility and additional benefits. Some of those benefits are explained here.

Co-branded cards are excellent options for people who have a proclivity for buying specific categories of products or prefer certain brands over others. They would be buying them anyway, so a co-branded card offers the chance to get rewards and discounts on their favourite products and brands.

Co-branded cards provide customers ease of making purchases with multiple merchants and platforms. This way people can use their card for obtaining maximum benefits such as reward points and cashback. Many co-branded cards also offer free merchandise upon spending a particular amount of money with specific merchants or on certain products.

Co-branded cards can be a great way to get discounts on your travel expenses through the common ‘air miles’ programme that many credit cards have. These cards can also allow you to travel for free or get free upgrades after you have accumulated enough miles or points. These cards also come with additional benefits like airport lounge access and dining discounts.

Earning reward points is another benefit offered by co-branded credit cards. Such points can be used for incredible discounts or upgrades and customers can also convert them into cash.

Most co-branded credit cards are valid for international transactions. This allows customers to overcome a lot of difficulties while travelling abroad. Such cards can be used across the world and the bill is generated in INR.

Co-branded cards offer 24/7 assistance. Customers can use this facility anytime and anywhere if they are confused about the usage of the card or stuck in a situation.

Some cards come with surcharge waiver facility and no transaction fee. Such cards can offer a great relief as such small bills can otherwise add up in big amounts and make your credit card bill seem like a burden.

Co-branded credit cards offer the cardholder significant benefits but there are some things should not be ignored while using them.

Annual fees: Most regular credit cards usually do not have any annual fees but co-branded credit cards may come with significant annual charges. You have to make sure that the annual fee on the card of your choice is worth its benefits else there is no point in obtaining a co-branded credit card.

Be aware of the benefits offered by the card: You have to carefully analyse the benefits offered by a co-branded credit card. You have to check if the benefits are relevant to your lifestyle or tastes. Do not forget to read the fine print on the card’s terms and conditions. Also, be clear about the reward points and special offers provided by the card, including how to redeem them and their validity. You can call customer support and ask them if you have any questions about the special offers.

Use them like a regular credit card: General precautions about regular credit cards apply to co-branded cards as well. You would have to pay your monthly bill regularly to maintain a good credit history and avoid late payment charges. People who keep borrowing from the issuing bank without paying their bills regularly are likely to fall into a debt trap.

Do not get swayed by the benefits: The benefits offered by co-branded credit cards are mostly associated with partner merchants. Such benefits may encourage customers to spend frequently and this habit can lead towards serious financial problems. You should not forget to estimate your expenses as you hurry to avail the benefits.

Use only one or two cards: The best way to avoid financial problems related to credit cards is to maintain only one or two co-branded credit cards. More credit cards may also lead to a higher number of missed or late payments, penalties, accumulated interest, and ultimately a huge outstanding balance. Obtain a card only when it suits your lifestyle and spending habits.